HINDUSTAN AERO. 2023-24 Annual Report Analysis

Mon, 5 Aug

HINDUSTAN AERO. has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

HINDUSTAN AERO. Income Statement Analysis

• Operating income during the year rose 12.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 46.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 32.2% in FY24 as against 24.8% in FY23.
• Depreciation charges decreased by 21.2% and finance costs decreased by 33.8% YoY, respectively.
• Other income grew by 13.6% YoY.
• Net profit for the year grew by 30.8% YoY.
• Net profit margins during the year grew from 21.6% in FY23 to 25.1% in FY24.

HINDUSTAN AERO. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	269,275	303,811	12.8%
Other income	Rs m	16,701	18,966	13.6%
Total Revenues	Rs m	285,976	322,777	12.9%
Gross profit	Rs m	66,885	97,781	46.2%
Depreciation	Rs m	17,847	14,072	-21.2%
Interest	Rs m	644	426	-33.8%
Profit before tax	Rs m	65,095	102,249	57.1%
Tax	Rs m	6,818	26,039	281.9%
Profit after tax	Rs m	58,277	76,210	30.8%
Gross profit margin	%	24.8	32.2
Effective tax rate	%	10.5	25.5
Net profit margin	%	21.6	25.1

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HINDUSTAN AERO. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 363 billion as compared to Rs 308 billion in FY23, thereby witnessing an increase of 17.8%.
• Current assets rose 21% and stood at Rs 630 billion, while fixed assets fell 4% and stood at Rs 136 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 766 billion as against Rs 661 billion during FY23, thereby witnessing a growth of 16%.

HINDUSTAN AERO. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	235,722	291,382	23.6
Current Liabilities	Rs m	308,273	363,243	17.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	660,781	766,409	16.0
Current assets	Rs m	518,769	630,175	21.5
Fixed Assets	Rs m	141,931	136,234	-4.0
Total Assets	Rs m	660,781	766,409	16.0

HINDUSTAN AERO. Cash Flow Statement Analysis

• HINDUSTAN AERO.'s cash flow from operating activities (CFO) during FY24 stood at Rs 82 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -64 billion, an improvement of 11.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -20 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -2 billion from the Rs 14 billion net cash flows seen during FY23.

HINDUSTAN AERO. Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	88,297	82,228	-6.9%
Cash Flow from Investing Activities	Rs m	-57,280	-64,101	-
Cash Flow from Financing Activities	Rs m	-17,313	-19,989	-
Net Cash Flow	Rs m	13,704	-1,861	-

Current Valuations for HINDUSTAN AERO.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 114.0, an decline from the EPS of Rs 174.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,583.4, stands at 41.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.5 times, while the price to sales ratio stands at 10.1 times.
• The company's price to cash flow (P/CF) ratio stood at 17.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	805.3	454.3
TTM Earnings per share	Rs	174.3	114.0
Diluted earnings per share	Rs	87.1	114.0
Price to Cash Flow	x	12.0	17.7
TTM P/E ratio	x	16.1	41.6
Price / Book Value ratio	x	3.1	5.5
Market Cap	Rs m	732,810	1,594,664
Dividends per share (Unadj.)	Rs	27.5	35.0

Ratio Analysis for HINDUSTAN AERO.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.7x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 240.9x during FY24, from 102.1x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 26.2% during FY24, from 24.7% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 35.2% during FY24, from 27.9% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 10.0% during FY24, from 8.9% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.7	1.7
Debtors’ Days	Days	640	555
Interest coverage	x	102.1	240.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.9	10.0
Return on equity	%	24.7	26.2
Return on capital employed	%	27.9	35.2

To see how HINDUSTAN AERO. has performed over the last 5 years, please visit here.

HINDUSTAN AERO. Share Price Performance

Over the last one year, HINDUSTAN AERO. share price has moved up from Rs 1,882.2 to Rs 4,583.4, registering a gain of Rs 2,701.2 or around 143.5%.

Overall, the S&P BSE SENSEX is up 18.5% over the year.

(To know more, check out historical annual results for HINDUSTAN AERO. and quarterly results for HINDUSTAN AERO.)